Depository System — Secretarial Practice STD 12 Commerce / Arts — Question

Dematerialization is the process of converting physical certificates into electronic form/mode. When an investor opts for a depository system, he has to approach a Depository participant, who is the authorized agent of the depository. The investor needs to surrender his share certificate to the company through a depository participants. On confirmation from the company and Depository DP arranges to credit investors account with an equivalent number of shares. Following steps are involved in the process of Dematerialisation: Submission of DRF by Investor: The investor has to submit the DRF (Demat Request Form) in triplicate and original certificates to DP. Entry in the system and forwarding request to Depository: DP enters the details of Demat request in the system and sends it to the Depository. Forwarding Copy to the Issuer: DP sends the physical certificates and copy of DRF to the Issuer i.e. Company Verification by the Issuer: The Issuer (Company) verifies and confirms to Depository about dematerializing of the securities. Updating records by the Depository: Depository records the request in the system and forwards it to the Issuer Company. Intimation to the DP: Depositor credits the dematerialized securities to the beneficiary/investors Demat A/c and informs the DP. Intimation to the investor: A statement of account is issued to the Investor periodically. It contains all the details of the investor.